Leidos (NYSE: LDOS) has revealed its fourth quarter and full year 2023 results and financial guidance for the following year. In the three and 12 months ending Dec. 29, 2023, revenue increased 8 percent and 7 percent year-over-year to $4 billion and $15.4 billion, respectively. For fiscal 2024, the revenue guidance is between $15.7 billion and $16.1 billion.
“With a strong finish to the year, Leidos delivered on all of its financial commitments. Record top- and bottom-line performance enabled us to exceed the high end of the guidance ranges that we set last quarter for all metrics,” Thomas Bell, CEO of Leidos, said in a statement published Tuesday.
While full-year net income fell 60 percent to $280 million versus the previous year, the $230 million profit during the quarter was 28 percent more than in Q4 2022. Adjusted EBITDA was $1.67 billion (10.8 percent margin), rose 12 percent over the previous year to $1.67 billion.
Leidos’ cash flow generation was strong. In Q4 2023 alone, cash flow provided by operating activities climbed 143 percent to $304 million, while the total for the year was $1.16 billion, representing a 17 percent year-over-year increase. The Fortune 500 company had $958 million free cash flow at year-end.
Regarding new business awards, Leidos’ net bookings in Q4 and the full year 2023 reached $2.8 billion and 16.5 billion. The book-to-bill ratios are 0.7 and 1.1, respectively. The backlog on year-end was $37 billion, $8.8 billion of which are funded.
During the earnings call, Bell, a 2024 Wash100 Award recipient, said said that the top and bottom-line financial performance over the last three quarters of 2023 gave hints of the company’s full potential.
Also on Tuesday, Leidos impressed investors with its financial results. The stock of the GovConIndex constituent surged 5.89 percent to $121.28, raising its year-to-date gain to 12.05 percent.
